Nearly all surveyed U.S. corporate defined benefit plan executives say inflation and higher interest rates are affecting their decision to initiate pension risk transfer transactions, according to results of a poll released by insurer MetLife on Wednesday.Read More
Expanding on a partnership that goes back decades, Nationwide has announced they will assume liabilities for Pennsylvania Farm Bureau through a pension risk transfer (PRT) transaction for their defined benefit (DB) plan.Read More
US corporate pension plans have reached a sweet spot in their derisking journeys that will enable them to pull the trigger on pension risk transfer transactions, including plan terminations.Read More
The first half of 2022 is shaping up to be the strongest first half of a year yet for pension risk transfers, according to Legal & General Retirement America.Read More
“Moreover, retirees will be presented with many different retirement strategies, products, services, and investment options. And, while vehicles like 401(k)s and Social Security grab all of the headlines your retirement plan should definitely include annuities.”Read More
Pension risk transfer activity is picking up; the third quarter was also reported to be the second highest single quarter to date, behind only the fourth quarter of 2012; and plan sponsors have several considerations when implementing transactions.Read More
Of the corporate pension plans surveyed by NEPC in September, 67% use liability-driven investments and of that total, 48% said they have hit triggers in their LDI glidepaths since January, allowing them to derisk further, according to NEPC’s 2021 Defined Benefit Trends Survey of 76 corporate pension plans with combined assets of $115 billion.Read More
Companies have been eager to shed the plans for several reasons. The simplest one is risk: A pension is a liability that sits on an employer’s balance sheet for a very long time, and it has to be paid even if business is slow and markets are down.Read More
